Suspicious Activity Reports to the IRS when buying or depositing money orders.
Jan 31, 2014, 8:44 am
#632
Join Date: Sep 2013
Location: PHL suburbs
Posts: 216
Wikipedia on structuring.
The relevant law.
Basically, it's an offense to arrange your deposits with the intent of avoiding scrutiny.
The relevant law.
Basically, it's an offense to arrange your deposits with the intent of avoiding scrutiny.
Jan 31, 2014, 4:02 pm
#634
Join Date: Mar 2012
Programs: Hilton, Hyatt, Priority, SPG - AA, Hawaiian Airline, United, US Airline
Posts: 608
Each week I have at least 20 Money Orders ($999/each) for MS. I usually use those MO to pay my credit cards at banks like Chase, Citi, Bank of America. Is it ok to cash them out and deposit them in my banks, then pay bill from my banks? Is it suspicious from my banks?
Jan 31, 2014, 5:38 pm
#635
Join Date: Apr 2012
Posts: 1,184
Yes, it is suspicious to deposit $20k of MO's each week. Not that you will definitely get shut down, but it is most definitely suspicious looking.
Jan 31, 2014, 7:49 pm
#637
Join Date: Apr 2012
Posts: 1,184
Which is probably true for 95% of people. If you have to ask whether depositing $20k/week in MO's is suspicious, I'm sure you have not talked to your branch manager or whatever to assuage concerns about what you're doing.
Feb 1, 2014, 7:55 am
#638
Join Date: Sep 2012
Location: IAH
Posts: 418
Structuring applies to non-deposit financial activities where you intentionally seek to avoid reporting requirements. For example, if you buy MOs with cash at under the various thresholds for reporting at several MSBs in a single day or consecutive days with the intent of avoiding that reporting, then that is structuring.
Feb 1, 2014, 1:47 pm
#640
Join Date: Feb 2013
Programs: All of them!
Posts: 322
It is ok to just deposit the MO. I think using MO to pay CCs is riskier because if the bank decides they don't like it, you have the potential to lose something more valuable than a checking account. Paying by ACH out of your checking account is a lot more normal. There are some reports of problems with some banks not liking large MO deposits, but I have had no problems depositing more than your suggested $20k/week at my local credit union. Be prepared to explain where you got the MO. I recommend doing this somewhere you don't have or want a CC because free checking accounts are a dime a dozen and if they shut you down, who cares. If you are MSing on a CC at the same bank where you deposit the MO, you're drawing unnecessary attention to yourself.
Feb 3, 2014, 4:05 pm
#642
Join Date: Sep 2007
Location: Chicago
Programs: AA, BA, CX, DL, EK, F9, GA, HA, IB, JL, KE, LH, MH, NH, OS, PG, QR, RJ, SA, TG, UA, VN, WN, ZH
Posts: 927
Feb 3, 2014, 5:49 pm
#643
Join Date: Mar 2012
Programs: Hilton, Hyatt, Priority, SPG - AA, Hawaiian Airline, United, US Airline
Posts: 608
Feb 4, 2014, 8:46 am
#645
Suspended
Join Date: Jun 2011
Posts: 639
SARS will be reported on excess MO deposits-guaranteed. And the bank is required by law to report you-and not tell you about it under any circumstances.
edit
So if you are declaring the profits (if any) as income and do not have anything to hide during your IRS audit everything will be ok lol.
edit
So if you are declaring the profits (if any) as income and do not have anything to hide during your IRS audit everything will be ok lol.